EMPTY CAPSULES MARKET ANALYSIS

Market Size and Trends

Global empty capsules market is estimated to be valued at USD 3.21 Bn in 2024 and is expected to reach USD 4.91 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.3% from 2024 to 2031.

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Global empty capsules market growth is driven by growing pharmaceutical industry and rising drug discovery activities. Factors such as rising geriatric population, increasing prevalence of chronic and lifestyle-related diseases, and growth in generics market  have resulted in higher consumption of empty capsules. Development of sophisticated flavors and innovations in capsule delivery technology can offer new opportunities for empty capsules manufacturers over the forecast period.

Rising Demand from Pharmaceutical Industry

 Global empty capsules market growth is driven by rising demand for capsules from the pharmaceutical industry. Growing pharmaceutical industry boosts the need for empty capsules. Empty capsules find widespread application in the pharmaceutical sector for manufacturing various medicines such as antibiotics, anti-fungal, anti-depressants, anti-hypertensives and many other drug formulas. Growing geriatric population worldwide who are more prone to chronic diseases and ailments can also boost demand for various medicines, and this boosts the need for empty capsules from pharmaceutical companies. Furthermore, increasing healthcare expenditure of people and governments across nations contributes to growth of the pharmaceutical industry. Many new drug molecules and formulations are being developed by companies, and this boosts demand for empty capsules as these are extensively used in the pharmaceutical manufacturing process. Capsule-based drug delivery offers various advantages such as targeted drug release, protection of active pharmaceutical ingredients (APIs) from environmental degradation, and enhanced bioavailability. Growing acceptability of capsule dosage forms by patients and physicians alike as compared to other forms can drive the empty capsules market growth.

Market Concentration and Competitive Landscape

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The preference for capsule dosage forms

The preference for capsule dosage forms among consumers and healthcare professionals is a major factor responsible for driving growth in the global empty capsules market. Capsules offer several advantages over other dosage forms like tablets. They are easy to swallow and digest for people of all age groups including children and geriatric patients who may have difficulty swallowing tablets. The empty shell structure of capsules allows for miniaturization and ensures targeted release of active pharmaceutical ingredients in the gastrointestinal tract. This enhances bioavailability and effectiveness of the drug. Capsules are also considered more elegant and appealing alternatives to tablets by many patients. Pharmaceutical manufacturers are increasingly opting for capsule dosage forms due to their flexibility in formulations. A wide range of formulations like powders, pellets, granules and liquids can be filled into capsules with tailored drug release profiles. Nutraceutical companies have also expanded capsule offerings of supplements, vitamins and herbal/ayurvedic medicines to meet consumer demand. Rapid growth of nutraceuticals and innovations in capsule drug delivery technologies are broadening opportunities for empty capsules.

Key Takeaways from Analyst:

Global empty capsules market growth is driven by increasing adoption of capsule dosage forms over tablets. Capsules are increasingly becoming the preferred form for various active pharmaceutical ingredients due to better absorbability and targeted release provided by capsules. The gelatin capsules segment dominates the market due to widespread usage. However, vegetarian capsule segment is also expected to witness growth  over the forecast period, owing to growing demand for plant-based capsules.

North America dominates the market currently due to strong pharmaceutical industry and healthcare spending in the region. However, Asia Pacific region excluding Japan is expected to emerge as the fastest growing market due to increasing generic production, rising healthcare spending and rapidly growing senior population in several countries in the region.

The availability of alternative dosage forms coupled with high manufacturing and R&D costs of capsules can hamper the market growth. Stringent regulations associated with capsule production increases the production costs. Furthermore, supply chain complexities can pose challenges particularly for global expansion of small and medium players in the market.

Market Challenges: High manufacturing cost

The high manufacturing cost of empty capsules can hamper the global empty capsules market growth. Empty capsule manufacturing is a complex process which involves various steps like gelatin preparation, die design, filling and sealing. Each of these steps requires sophisticated machinery and skilled workforce, which increases the overall production cost. As gelatin is key raw material used in capsule shells manufacturing, its rising prices can significantly impact the manufacturing costs of these capsules. According to World Bank Data, global annual inflation rate increased sharply to 7.8% in 2022 from 1.7% in 2020 mainly due to rising input costs including gelatin. The empty capsule manufacturers find it challenging to pass on the entire rising input cost burden to customers due to price sensitivity in the pharmaceutical industry. This price pressure on manufacturers has restricted their ability to invest in advanced production technologies that can enhance efficiencies and lower per unit costs. Stringent regulatory norms for capsule manufacturing facilities in terms of hygiene and quality standards increases compliance complexities and associated expenses.

Market Opportunities: Growing focus on customized capsules

Global empty capsules market growth is driven by growing focus on customized capsules by pharmaceutical manufacturers. Customized capsules allow pharmaceutical companies to develop capsules tailored to specific drug formulations and targeted patient groups. This offers them an opportunity to enhance patient outcomes and experiences. Various pharmaceutical vendors are now investing in sophisticated technologies and equipment to augment their customized capsule production capabilities. For example, many manufacturers are opting for laser engraving techniques that enable printing logos, graphics and text on capsule shells. This helps increase brand recognition of drugs and also aids pharmacists and patients in identifying each product variety easily. Vendors can further personalize capsules by offering different colors, shapes and flavors based on patient profiles. This high level of customization as per specific product requirements can boost demand for empty capsules in the near future. Rising uptake of vegetarian and halal capsules can also provide growth opportunities for empty capsules providers. In 2021, according to the United Nations Report, annual vegetarian capsule demand is expected to increase by over 25% globally by 2025. Several large pharmaceutical manufacturers are expected to launch more vegetarian drugs in the future in response to growing health-conscious demographic worldwide. This will mandate increased use of plant-based or halal empty capsules, thus, driving the market growth.

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By Product - Convenience and Effectiveness Boosts Adoption of Gelatin Capsules

In terms of product, gelatin capsules segment is estimated to contribute the highest market share of 60.2% in 2024 due to their convenience and effectiveness. Gelatin capsules dissolve quickly once ingested, allowing the active ingredients to be released faster into the bloodstream compared to other capsule types. This makes gelatin capsules highly suitable for formulations requiring rapid drug dissolution and absorption such as immediate-release drugs. Many leading pharmaceutical companies prefer gelatin capsules for drug delivery due to their fast disintegration and dissolution properties. Gelatin capsules are also easy to swallow as compared to large pills, making them a preferred format for pediatric and geriatric applications where pill swallowing can be difficult. Their oval shape and smooth exterior allow for effortless ingestion. This convenience factor has increased acceptability of gelatin capsules among patients. The transparent nature of gelatin capsules also allows viewing of contents, assisting with compliance. Their popularity in the dietary supplements industry can be attributed to the visibility of contents and perceived purity of gelatin as a natural ingredient Gelatin capsules are economical to manufacture due to established formulation and filling technologies. Gelatin is widely available at reasonable prices. Capsule filling machines can quickly fill a large volume of gelatin capsules with automated assembly lines. Established quality standards and regulations pertaining to gelatin further increase confidence in commercial-scale manufacturing of gelatin capsule products.

By Functionality- Rapid Onset of Action Boosts Immediate-release Capsules Segment

In terms of functionality, immediate-release capsules segment is estimated to contribute the highest market share of 50.1% in 2024, due to the need for rapid drug absorption to produce swift therapeutic effects. An immediate-release formulation is preferred for drugs designed to achieve their purpose in a short time window. This includes analgesics meant to relieve pain quickly, antibiotics designed to rapidly reach infection sites, and drugs required to be released immediately upon administration such as emergency medications. For conditions requiring prompt relief, immediate-release capsules effectively boost drug concentrations in the bloodstream within minutes of ingestion. Their ability to dissolve rapidly in gastric fluids and release contents means drugs bound for systemic circulation can attain target sites of action with expedited kinetics. The rapid dissolution properties of immediate-release capsules are well-suited for drugs with short half-lives that necessitate timely absorption for optimal performance. Immediate-release capsules are used in acute treatments like seasickness, allergies and migraine headaches that mandate accelerated onset of drug effect. For patient classes like geriatrics with slowed gastrointestinal motility, immediate capsules compensate by swiftly elevating drug levels before active substances can degrades.

By Material - Widespread Acceptance and Yield Drive Pig Meat Gelatin Segment

In terms of material, pig meat gelatin capsules segment is estimated to contribute the highest market share of 30.21% in 2024, owing to their widespread acceptance and high yields. Pig skin and bones are routinely used sources of gelatin that yield high volumes of the raw material during processing. Their abundance has lowered production costs while ensuring pig gelatin's economy as a commercially preferred capsule coating. Empty pig gelatin capsules benefit from having no religious restrictions on consumption and are deemed safe for all faiths and medical conditions barring allergies. This promotes their broad applications without formula change. Pig gelatin capsule shells are also versatile excipients compatible with a vast choice of active ingredients, from nutritional to pharmaceutical actives. Pig gelatin offers favorable physico-mechanical properties as a film-former including elasticity, gastric permeability and disintegration kinetics suited to varying drug release patterns. Capsules produced from it demonstrate adequate stability for recommended shelf-lives without loss of quality. This consistency simplifies scale-up and logistical handling of finished products. Pig gelatin's established history of safe use provides demonstrated compliance with safety regulations of global health authorities.

Regional Insights

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North America has established itself as the dominant region in the global empty capsules market with an estimated market share of 39.2% in 2024. The presence of leading capsule manufacturers and capsules filling machine suppliers has strengthened the supply chain infrastructure in the region. Growing nutraceutical and pharmaceutical industries in the U.S. and Canada boosts demand for empty capsules. With the significant geriatric population suffering from chronic conditions, the regional healthcare expenditure is also increasing steadily to treat age-related diseases, thus, boosting product sales. Moreover, the region is an attractive market for pharmaceutical companies to launch their drugs due to streamlined regulatory approval process as compared to other areas of the world.

Asia Pacific region has emerged as the fastest growing market for empty capsules globally. Rapidly increasing healthcare expenditure, large patient pool, and rising per capita income have boosted the regional pharmaceutical industry. Countries like China, India, and Japan are prominent manufacturers and consumers of empty capsules for domestic as well as international markets. India in particular has gained significance with its cost competitive manufacturing base and presence of numerous nutraceutical manufacturers. Rising health awareness has prompted consumers to opt for dietary supplements and functional foods which employ gelatin capsules for delivery. The international players in the empty capsules domain are focusing on strategic investments and partnerships in Asia Pacific to gain early mover advantage in the developing markets.

Market Report Scope

Key Developments

• In November 2021, ACG Capsules launched the "ACG Loves Nothing" campaign, emphasizing zero-problem production in pharmaceutical and nutraceutical manufacturing. It aim to prevent issues such as product damage during storage by providing high-quality empty capsules and expert guidance. By addressing a specific case where capsules were breaking due to their hygroscopic nature, ACG developed modified capsules that effectively resolved the problem.
• In March 2021, CapsCanada, a company under Lyfe Group, introduced a new service for manufacturing liquid-filled hard capsules
• In August 2020, Dr. Reddy's Laboratories, a global pharmaceutical company, received approval from the U.S. Food and Drug Administration (USFDA) to launch generic Penicillamine capsules in the U.S. market. These capsules are used to treat Wilson's disease and cystinuria.
• In April 2020, Qualicaps, a pharmaceutical company, expanded its operations in the Middle East and Africa by establishing agency and distribution partnerships with several leading companies in the region

*Definition: Global empty capsules market is focused on providing empty capsules to pharmaceutical companies for filling with various pharmaceutical ingredients like drugs, powders, liquids, and others. Empty capsules are essentially gelatin-based or non-gelatin-based shells that hold and deliver medications in the body. The global empty capsules market offers a variety of capsule sizes and types like hard gelatin capsules and softgels to meet varied pharmaceutical needs. Key players in this market work with capsule manufacturers to produce capsules tailored to specific drug delivery applications.

Market Segmentation

•  Product Insights (Revenue, USD Bn, 2019 - 2031)
  • Gelatin Capsules
  • Non-gelatin Capsules
•  Functionality Insights (Revenue, USD Bn, 2019 - 2031)
  • Immediate-release Capsules
  • Delayed-release Capsules
  • Sustained-release Capsules
•  Material Insights (Revenue, USD Bn, 2019 - 2031)
  • Pig Meat Gelatin Capsules
  • Bovine Gelatin Capsules
  • Plant-based Capsules
  • Starch-based Capsules
  • Pullulan Capsules
  • Others
•  End User Insights (Revenue, USD Bn, 2019 - 2031)
  • Pharmaceutical Companies
  • Cosmetic & Nutraceutical Companies
  • Clinical Research Organizations (CRO'S)
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • ACG Worldwide
  • Capsugel
  • Qualicaps Inc.
  • Bright Pharma Caps Inc.
  • Sunil Healthcare Ltd.
  • CapsCanada Corporation
  • Roxlor LLC
  • Snail Pharma Industry Co. Ltd.
  • Suheung Co. Ltd.
  • Medi-Caps Ltd.
  • Qingdao Yiqing Medicinal Capsules Co., Ltd.
  • Shanxi Guangsheng Medicinal Capsules Co., Ltd.
  • Nectar Lifesciences Ltd.
  • Kerry Inc.
  • JC Biological Technology Co. Ltd.